FORT LAUDERDALE, June 2, 1998 – South America’s fastest growing hotel
franchise and management company, Choice Atlantica Hotels has announced
development plans for three new hotels in Brazil: a 108-room Sleep Inn
in Campinas, a 240-unit Comfort Hotel in Sao Paulo and a 117-room Comfort
Hotel & Suites, also in Sao Paulo.

Development of the Comfort Hotel - ANHEMBI is already underway and the
project is scheduled for completion during
the first quarter of the year 2000. The property is a condominium flat
hotel and units will be owned by private investors. It is located
near the ANHEMBI Conference Center. Drawing more than 1 million people
to the area each year – most of whom require overnight accommodations –
the ANHEMBI Conference Center is Sao Paulo’s largest convention and exhibition
center and home to more than 30 events annually. The hotel will be
the only full-service hotel in the area and will include 240 guest rooms
with large desks, ergonomic chairs and dataports, a coffee shop, fully
equipped business center, fitness center, swimming pool and abundant parking.

In August, construction will begin on the 108-room Sleep Inn-Galleria
located near the Galleria Shopping Center and a newly constructed commercial
office complex in Campinas, a major city in the state of Sao Paulo.
This limited service hotel – the first Sleep Inn in Brazil -- is expected
to be completed in August 1999 and will offer features such as in-room
desks, efficient telephone access and dataports.

Choice Atlantica Hotels will manage the property upon completion and
will own the property along with PROMON, one of Brazil’s largest
engineering firms, Cariba, a commercial real estate development company
and LMS, a consulting and investment company that specializes in commercial
real estate.

Choice Atlantica Hotels also has entered into a long-term leasing agreement
for the Trianon Hotel, located in Paulista, an area recognized as the commercial
and financial center of Sao Paulo. Choice Atlantica Hotels will assume
control of the property in July 1 and will immediately invest US$1.5 million
to upgrade the property to the standards of a Comfort Hotel & Suites.
The hotel will be renamed Comfort Hotel & Suites - Trianon Park.
Located near Trianon Park, the 117-room hotel will include 28 suites,
restaurant, lounge, swimming pool and two meeting rooms.

“Like all Choice products, these three hotels will be specifically designed
and managed to cater to the needs of international and regional business
travelers,” said Paul J. Sistare, president and CEO of Choice Atlantica
Hotels. “These projects are strongly reflective of the kinds of facilities
that are in demand not only in Brazil but throughout the Southern Cone
of South America. No matter where they are from or where they are
going, today’s business traveler expects to stay in an affordable, efficient,
contemporary hotel that provides a wide range of business-traveler-friendly
features.”

Choice Atlantica Hotels has plans to develop 140 hotels throughout South
America over the next five years. Presently, 37 hotel projects are
open, under construction or in other stages of development.

The company recently announced a partnership agreement with the Latin
American private equity fund of Darby Overseas Investments, Ltd., headed
by former U.S. Secretary Nicholas Brady, who now serves as vice chairman
of Choice Atlantica Hotels. In other recent news, the company acquired
the master franchise agreement to develop Choice hotels in Chile, Peru,
Ecuador and Bolivia and will provide franchising and management services
to some 25 hotels in those countries in the next five years. The
company already is experiencing solid growth in Brazil and Argentina. Choice
Atlantica Hotels also is developing three comprehensive reservations offices
to provide sales support in the eight countries.

Among the projects presently underway is a 400-room Quality Hotel and
Conference Center at the Guarulhos International Airport in Sao Paulo and
12 Quality Hotels over a 10-year period in Argentina and Uruguay.

Choice Atlantica Hotels is based in Sao Paulo and also has offices in
Fort Lauderdale, Buenos Aires and Santiago.